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NEW QUESTION # 50
Joey is preparing an NEC contract for the construction of a new school.
He includes a lump-sum price of £5 million.
The contractor receives payment upon completion of specific milestones.
Q: In which section of the contract should this be detailed?
Answer Options:
Answer: B
Explanation:
In NEC contracts, pricing mechanisms are detailed in Options A-F (p.36). W clauses handle dispute resolution, X clauses cover secondary options, and Z clauses are additional conditions. [P.36]
NEW QUESTION # 51
When should a company use redundancy to implement change?
Answer Options:
Answer: D
Explanation:
Redundancy is a strategic tool for cultural change (p.208).
Options A & B relate to cost-cutting and downsizing, not change.
Option D involves expansion, not workforce reduction. [P.208]
NEW QUESTION # 52
Glitter Kitten Ltd is considering two expansion options. The CEO wants a quick analysis and uses the Payback Method.
Q: What financial metric is the leadership team using for expansion?
Answer Options:
Answer: C
Explanation:
Net Present Value (NPV) calculations require a discount rate (p.1.4).
Bank rate (B) relates to loans, not investment decisions.
Interest rate (C) applies to borrowing, not profitability.
Return rate (D) is not the main NPV metric. [P.1.4]
NEW QUESTION # 53
Scenario:
Fin Inc is a consultancy organisation in the private sector, founded 10 years ago by CEO Geoff Davies, who runs a tight ship. Many employees are scared of Geoff, and there are rumours that he fires people for refusing overtime. Fin Inc is working with a new client on a shopping centre project led by the well-liked CFO. The client wants a flexible, collaborative contract with transparent cost-sharing.
What type of organisational structure does Fin Inc have?
Answer: C
Explanation:
The structure is centred around the CEO's authoritative style, which is indicative of a power-based structure.
NEW QUESTION # 54
Glitter Kitten Ltd CEO applies the Payback Analysis for expansion.
Investment: £50m
Annual returns: £10m
Q: What is the payback period?
Answer Options:
Answer: B
Explanation:
Payback period formula:
Investment (£50m) ÷ Annual inflow (£10m) = 5 years. [P.1.4]
NEW QUESTION # 55
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